h1 2020 results · 7/29/2020 · ce document est la propriété du groupe la française des jeux....

Ce document est la propriété du groupe La Française des Jeux. Toute reproduction, même partielle est interdite. Classe C2

H1 2020 results

Investor presentation

29 July 2020

2

This document may contain certain forward-looking statements which are based onestimations and forecasts. By their nature, these forward-looking statements are subjectto important risks and uncertainties and factors beyond our control or ability to predict,in particular those described in FDJ Registration Document which is available on thewebsite (https://www.groupefdj.com/en/investors/financial-publications.html).

These forward-looking statements should not be considered as a guarantee of futureperformance, the actual results could differ materially from those expressed or implied bythem. The forward-looking statements only reflect FDJ’s views as of the date of thisdocument, and FDJ does not undertake to revise or update these forward-lookingstatements.

The forward-looking statements should be used with caution and circumspection and inno event can FDJ and its Management be held responsible for any investment or otherdecision based upon such statements. The information in this document does notconstitute an offer to sell or an invitation to buy shares in FDJ or an invitation orinducement to engage in any other investment activities.

Forward-looking statements

https://www.groupefdj.com/en/investors/financial-publications.html


3

Key highlights

H1 2020 rhythmed by Covid crisis, with a decline in stakes limited to -18%

◼ Good momentum up until mid-March

◼ Lockdown (from 16 March to 11 May)

◼ Gradual recovery; 2019 levels reached mid-June

EBITDA margin safeguarded

◼ €80m cost reduction plan; 2/3 achieved in H1

◼ Low sports betting player payout ratios

Confidence in the strength of FDJ’s business model in an environment still uncertain

◼ The crisis validates Group's strategic initiatives, particularly online

◼ A solid financial structure

◼ Growth-generating investments maintained

Inscription of our “raison d’être” (purpose) in the introduction to the FDJ’s bylaws

FDJ Group: responsive, strong and supportive


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H1 2020 key figures

Stakes€6.9bn -18.4%

Revenue€849m-14.7%

EBITDA€174m -16.4%

Margin 20.5%

-12% for lottery- 26% for sports betting

-13% for lottery-39% for sports betting

-21% at points of sale

-15% for lottery-4% for sports betting

2019 data adjusted for new fiscal regime and Sporting Group acquisition on a full-year basis

EBITDA: recurring operating profit before depreciation and amortisation


6.35.3

0.3

0.5

H12019 H1 2020

POS lottery Online lottery

6.6

5.8

-12.6%

+50.3%

-15.9%

2.6 2.2

4.0

3.6

H1 2019 H1 2020

Draw games Instant games

6.6

5.8

-12.6%

-11.3%

-14.6%

5

€6.9bn stakes reflecting sporting events shortage and lockdown; online lottery up sharply

Lottery stakes(€bn)

Sports betting stakes

(€bn)

by type by channel

H1 2019 H1 2020

Sports betting

1.8

1.1

-38.8%



6

Revenue down less than stakes due to low player payout

6.65.8

1.8

1.1

H1 2019 H1 2020

Lottery Sports betting ABU / holding

0.80.7

0.2

0.1

H1 2019 H1 2020

Lottery Sports betting ABU / holding

8.4

6.9

1.0

0.8(€bn) (€bn)

-38.8%

-12.6%

-25.6%

-12.2%

Stakes

- 18.4%

Player payout ratio (PPO):

H1 2020 = 67.3% H1 2019 = 68.6%


Revenue

-14.7%


Cost reduction plan* − targeted: >10% of FY fixed costs**; achieved: >15% of H1 fixed costs**

≈ 50%

Other charges

> €80m

7

Advertising

≈ €60m

FY target

H1achievement

> 50%


equivalent to c.7 pps of EBITDA margin

* Compared with costs initially budgeted for 2020

* * Variable costs defined as fluctuating in line with activity levels; fixed costs defined as requiring management intervention to be adjusted


8

From revenue to EBITDA

-

(€m)

-€146m -14.7%

-€88m-20.7%

-€14m-10.0%

-€4m-3.2%

-€6m-7.0%

-€34m-16.4%




9

Maintaining an EBITDA margin >20% thanks to cost reduction plan

174

Margin 20.9% 20.5%




10

Lottery : contribution margin rate safeguarded at 32%

61 65

115 109

341286

H1 2019 H1 2020

Retailer commissions

Other costs of sales

Marketing & communication

As % of revenue33.2 % 32.2%

773 679Revenue€517m

€460m-12.2%

-16.1%

-5.2%

+6.6%

- 11.0%

-14.7%

219



11

Sports betting: contribution margin rate up +7pps to 31.3% due to low player payout

As % of revenue24.3 % 31.3%

195 145Revenue -25.6%

-4.4%

4134

24

15

83

50

H1 2019 H2 2020

Retailer commissions

Other costs of sales

Marketing & communication

-39.8%

- 37.5%

-17.1%

€148m

€99m

-33.1%

45



12

Net profit impacted by non-recurring items

50




13

Net cash surplus up +€218m at end-June 2020, driven by working capital movements

(1) Including tax paid of €25m

(1)



including timing differences in the payment of public levies


14

Available cash of more than €800m at end-June 2020

B/S : balance sheet


15

Appendix


16

Income statement H1 2020



In € millionsH1 2020

H1 2019

(adjusted)

H1 2019

(published)

Stakes 6,898 8,454 (1,555) (18.4%) 8,420 (1,522) (18.1%)

Gross gaming revenue (GGR) 2,253 2,654 (401) (15.1%) 2,663 (410) (15.4%)

Net gaming revenue (NGR) 829 976 (147) (15.0%) 933 (104) (11.2%)

Revenue from other activites 20 19 +0 1.8% 11 +9 86.3%

Revenue 849 995 (146) (14.7%) 944 (95) (10.1%)

Remuneration of distributors (336) (424) +88.0 (20.7%) (424) +88 (20.7%)

Other cost of sales (128) (142) +14 (10.0%) (140) +12 (8.7%)

Marketing & Communication expenses (133) (138) +4 (3.2%) (127) (6) 4.9%

General & administrative expenses (78) (83) +6 (7.0%) (76) (2) 2.3%

EBITDA 174 208 (34) (16.4%) 177 (3) (1.8%)

EBITDA margin (% CA) 20.5% 20.9% -0.4 bp 18.8% +1.7 bp

Depreciation and amortisation (50) (43) (7) 16.2% (41) (9) 21.6%

Recurring operating profit 124 165 (41) (24.9%) 136 (12) (8.9%)

Non recurring items (30) (7) (23) -

Net financial expense (5) 11 (16) -Income tax

Income tax (39) (44) +6 -

Net result 50 96 (46) (47.6%)

% %


17

Divisional information



In € millions Lottery BUSport

Betting BU

Other

segments

Holding

company

Total before

depreciation

and

amortisation

Depreciation

and

amortisation

Total Group

Stakes 5,777 1,108 14 - 6,898 6,898

Gross gaming revenue 1,954 298 1 - 2,253 2,253

Net gaming revenue 677 145 6 - 829 829

Revenue 679 145 24 1 849 849

Cost of sales (395) (65) (3) - (464) (18) (482)

Marketing and communication expenses (65) (34) (21) (12) (133) (14) (147)

Contribution margin 219 45 (1) (12) 251 (32) 219

General and administration expenses (78) (78) (18) (95)

EBITDA 174

Depreciation and amortisation (50)

Recurring operating profit 124

30 June 2020

In € millions Lottery BUSport

Betting BU

Other

segments

Holding

company

Total before

depreciation

and

amortisation

Depreciation

and

amortisation

Total Group

Stakes 6,610 1,810 34 - 8,454 8,454

Gross gaming revenue 2,251 403 - - 2,654 2,654

Net gaming revenue 771 195 9 - 976 976

Revenue 773 195 27 - 995 995

Cost of sales (456) (107) (3) - (566) (19) (585)

Marketing and communication expenses (61) (41) (22) (14) (138) (12) (150)

Contribution margin 256 48 2 (14) 291 (31) 260

General and administration expenses (83) (83) (12) (95)

EBITDA 208

Depreciation and amortisation (43)

Recurring operating profit 165

30 June 2019 adjusted


(1) 2020 : goodwill related to the acquisition of Sporting Group after impairment recorded at end-June 2020(2) 2020 : including €380m syndicated loan for the payment of exclusive rights to the French State(3) 2020 : including €103m of funds to be retroceded to the French State

18

Balance sheet

Working capital surplus (€m):

Jun 2020 : 747Dec 2019 : 529

In € millions30 June

2020

31 December 2019

publishedIn € millions

30 June 2020

31 December 2019

published

Goodwill (1) 28 56Equity 535 569

Exclusive operating rights 363 371

Intangible assets 162 148 Non-current provisions 104 106

Property, plant and equipment 386 394 Non-current financial liabilities (2) 569 230

Intangible and tangible assets 939 969 Deferred tax liabilities 26 25

Non-current financial assets 378 584 Non-current liabilities 699 361

Investments in associates 15 15 Current provisions 16 17

Non-current assets 1,332 1,568 Suppliers and other creditors 83 134

Inventories 16 11 Distribution network liabilities 231 278

Distribution network receivables 360 438 Public levies 541 415

Other receivables 328 347 Winnings payable and distributable 244 189

Tax payable assets 6 19 Current player funds 176 157

Current financial assets 355 272 Other current liabilities 182 170

Current assets 1,065 1,086 Current financial liabilities (3) 165 567

Cash and cash equivalents 476 202 Current liabilities 1,638 1,926

Total Assets 2,873 2,856 Total Equity and liabilities 2,873 2,856

h1 2020 results · 7/29/2020 · ce document est la propriété du groupe la française des jeux....

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